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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
2018-06-06 Daily Xml
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Energy Security

Mr BASHAM (Finniss) (14:37): My question is to the Minister for Energy and Mining. Will the minister please update the house on what steps are being taken to improve the security of the energy system?

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining) (14:38): Thank you very much to the member for Finniss, again advocating on behalf of his constituents, who are suffering under the previous government's legacy of high—and unacceptably high—cost of living. So what is happening? What is happening to improve security—

The SPEAKER: Yes, tell us, please.

The Hon. D.C. VAN HOLST PELLEKAAN: —of our electricity system? Well, to start with, it is important to consider what needs to be improved. The reality is—

Mr Mullighan interjecting:

The SPEAKER: The member for Lee will not interject.

The Hon. D.C. VAN HOLST PELLEKAAN: —that one of the most important aspects of a secure—

Mr Mullighan interjecting:

The SPEAKER: The member for Lee is warned.

The Hon. D.C. VAN HOLST PELLEKAAN: —electricity system is having synchronous electricity delivered into the grid, not only having reliable but also good quality electricity going into the grid. Unfortunately, those opposite, through their—

Members interjecting:

The SPEAKER: The member for Lee is warned for a second time. The member for Playford is warned.

The Hon. D.C. VAN HOLST PELLEKAAN: —failed energy policies, let down all South Australians and, through their overzealous approach to enforcing more and more wind farms without storage into our electricity system, they drove out base load generation and they made the electricity in our state far less secure than is acceptable. That is the issue that needs to be fixed.

It was fixed to begin with by the Australian Energy Market Operator (AEMO), which had no other choice but to enter the market and force gas generators in South Australia to turn on when necessary at times when, because of the policies of those opposite, those gas generators may, for their own benefit, choose not to enter the market. AEMO, for the benefit of consumers and for the stability of the market, entered the market and said that they must turn on. In the last 12 months alone that has cost electricity consumers $20 million, so not only do we have a market failure but we have an additional cost to consumers due to the policy of those opposite.

What is happening at the moment? Thankfully, ElectraNet has been given permission to pursue synchronous condensers. As I am sure you know, Mr Speaker, synchronous condensers support the stability of our grid, support the delivery of 240 volts, 50 hertz, electricity into our grid. There is an overabundance of wind farms, brought on by those opposite, without storage, unfortunately; if they had listened to the Premier they would have brought in grid-scale storage much sooner.

The synchronous condensers allow the delivery of quality electricity into the grid. However, what is really important is that it will save the consumers of South Australia money, instead of what those—

Mr Koutsantonis interjecting:

The SPEAKER: The member for West Torrens is warned for the second and final time.

The Hon. D.C. VAN HOLST PELLEKAAN: —opposite have done, which is to force electricity prices up and up and up through their failed policies. We will implement our policies which will contribute to more affordable and more reliable electricity for South Australia, and we are partnering with other organisations like AEMO, like in this case ElectraNet, to make electricity cheaper.

It is estimated that the net cost savings for the typical South Australian household will be $3 to $5 per year. Those opposite might scoff, but it is much better than the increased prices—10 per cent, 15 per cent, 18 per cent—that they delivered to the market. We had good news from Origin yesterday, we have good news on security, and there is good news still to come on electricity.

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